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Cryptocurrency lending platform Celsius has reported that some users will be able to withdraw 100% of their initial funds more than 300 days after the platform froze withdrawals.
In a May 4 announcement, Celsius said that after court approval, eligible users will be able to withdraw the remaining 6% of distributed storage assets from the platform. Until January, the same users, mostly those who had only ever held funds in escrow accounts, were able to withdraw up to 94% of their funds.
Earlier this year, the Court approved the distribution of the remaining 6% of Eligible Users’ Distributable Custody Assets (pure custody and transferred custody below $7,575 at the time of transfer) for a total of 100% of Eligible Users’ Distributable Custody Assets.
— Celsius (@CelsiusNetwork) May 4, 2023
The announcement marked progress in refunding some Celsius customers for missing funds for the first time since the company froze withdrawals in June 2022 and then filed for bankruptcy in July. Many Celsius users have reported failed withdrawal attempts despite the funds appearing to have been available, and some withdrawal requests have taken days to process.
I have funds in Custody but can’t withdraw the 36% yet… anyone else having this issue?
— ©elsius x Voyager (@Celsius_Voyager) May 5, 2023
Related: Celsius publishes list of users eligible to withdraw most assets
According to court documents, Celsius sought to merge its businesses in the United Kingdom and the US, presumably so they would be treated equally in bankruptcy proceedings. Celsius founder and former CEO Alex Mashinsky also faced a lawsuit filed by the New York Attorney General’s Office in January. Mashinsky filed a motion to dismiss the case on May 2, calling the AG case “parrot disinformation.”